Halliburton wins approval of asbestos settlement

Published 5:30 am, Saturday, July 17, 2004

Halliburton won court approval of its $4.2 billion asbestos settlement plan Friday when a bankruptcy judge in Pittsburgh signed the Chapter 11 restructuring plans for several key business units, including KBR and DII Industries.

KBR and DII filed for bankruptcy protection in December as a way to deal with claims by some 400,000 people who said they were injured by exposure to asbestos.

The bulk of the claims have been traced to Halliburton's acquisition of Dresser Industries several years ago when Vice President Dick Cheney was chief executive officer.

Judge Judith Fitzgerald's decision Friday is one of the last hurdles before the businesses can emerge from bankruptcy. Remaining tasks include the funding of a trust, using cash, stock and notes, that will be used to pay future claims as they are submitted.

Halliburton shares rose 45 cents to close Friday at $31.50. For the year to date, the stock is up by 21 percent. The asbestos deal's progress aided the stock because it capped a potentially crippling cost — an endless run of litigation by those exposed to asbestos.